EDS awarded $33 million federal contract

EDS, the largest provider of Medicare fee-for-service data center operations, has been awarded additional claims processing workloads under a task order for the Centers for Medicare & Medicaid Services (CMS) Enterprise Data Center (EDC) Indefinite Delivery/Indefinite Quantity contract. The additional claims processing work is worth up to $33 million if all options are exercised and will continue through 2012.
According to EDS Spokesman Brad Bass, “Most of the work for this contract will be done in Tulsa.  We do a lot of work in Tulsa.”

Under the new task order modification, EDS will process the Medicare Part A and Part B insurance claims for the Medicare Administrative Contractor (MAC) Jurisdiction 6, which includes the states of Illinois, Wisconsin and Minnesota. EDS will also process a workload of Railroad Retirement Board (RRB) claims for retired railroad personnel in all 50 states. EDS will transition seven Medicare claims workloads to the EDS data center. More than 128 million claims are processed annually under the MAC Jurisdiction 6 and the RRB.
EDS is one of three companies competing for task orders under the 10-year, $1.9 billion EDC contract awarded in March 2006. CMS is using the contract to consolidate data center operations supporting mainframe and client server applications. That work, currently performed at more than 15 different facilities, will be consolidated into four data centers, saving CMS hundreds of millions of dollars over the ten year contract period.
“As a result of this contract, CMS will be able to improve services to those filing Medicare Part A and B insurance claims and to apply more efficient business processes to drive cost savings.,” said Dennis Stolkey, EDS general manager, U.S. Public Sector. “This further expands EDS’ support of the CMS data center consolidation program.”
Since March 2006, CMS has awarded EDS three task orders to perform similar functions in 18 other states and for all Durable Medical Equipment claims processing nationwide. In June 2006, CMS awarded an EDC task order to EDS to provide web hosting services to support CMS’ outward facing websites.
“Over the past 21 months, EDS has successfully completed 25 transitions to our data center,” said Don Picard, EDS vice president of Federal Healthcare. “We are proud of our track record and fully expect to continue to timely and effectively support CMS’ drive to consolidate and rationalize its data center operations.”
EDS processes about 350 million Medicare fee-for-service claims each year. EDS maintains the Medicare Part B Standard System, used to process more than 800 million claims annually and is the largest CMS Program Safeguard Contractor providing fraud, waste and abuse detection services in a variety of states.

About EDS
EDS (NYSE: EDS) is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry 45 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world.